The 1991 Economic Crisis in India was a severe balance of payments crisis that led to a significant economic downturn. Triggered by rising oil prices and a decline in foreign exchange reserves, the government faced the risk of defaulting on its international obligations. In response, India implemented major economic reforms, including liberalization and deregulation, which shifted the economy towards a market-oriented model. This crisis marked a turning point, leading to increased foreign investment and integration into the global economy, ultimately transforming India's economic landscape.